EMV Liability Shift Dates Standing Firm

Product Manager, Payment

We’re now less than 6 months away from the October liability shift that is driving merchants and card issuers to deploy EMV-enabled point-of-sale systems and EMV chip cards respectively.  A big question on everyone’s mind as this date draws closer is whether the major card associations will maintain the current liability shift dates, or delay them to provide more time to get new cards and terminals into the market.  What we’ve continued to see is a strong commitment from the card associations to hold their dates in order to continue incentivizing a rapid adoption of EMV to help stem the growing problem of fraud in the U.S.

On April 21st in the Discover Financial Q1 Earnings Report call, Chairman and CEO David Nelms fielded a question about delays in the October 2015 liability shift date.  Nelms responded, “I think that it’s important that we all try to hit the October date.  This has been a long time in the works; it’s been a date that was set quite some time ago.  And as an industry, we know we need to do something to better control security and fraud losses.”  He continued, “And I think it’s in the merchants’ best interests to try to get there just — if anything, more than it is for the issuers, when you look at some of the breaches that have happened.”  This is certainly an important point for merchants, because as EMV becomes ubiquitous, the motivation for fraudsters to attempt network breaches goes down as their ability to make counterfeit cards with the stolen data is eliminated.

In a previous C-Store Advisor Blog, “EMV – The Horse is Out of the Barn”, Parker Burke referenced similar statements from executives at both MasterCard and Visa.  The overall sentiment is that fraudsters are not slowing down their efforts to capitalize on the last major market to adopt EMV technology, and that any delay in the U.S. EMV migration would only worsen the problem of counterfeit fraud.

Visa is further supporting a rapid adoption of EMV by taking their message on the road in the U.S. to help small businesses and consumers understand EMV and the benefits of chip technology.  Visa kicked off its 20-city Small Business Chip Education Tour in Austin, TX in March.  Kim Lawrence, senior vice president of Corporate Initiatives at Visa, said in the news release, “Chip education and adoption is critical, because as of October 1, 2015, liability for counterfeit fraud on Visa chip card accounts will shift from the chip card issuer to business owners who have not upgraded to chip-activated terminals.”

As we continue to see a reaffirmation of the established liability shift dates, it becomes increasingly important for petroleum retailers who have not started their EMV upgrades to begin making plans today, both for their in-store POS as well as at their dispensers.

Additional Information:

For additional resources on the EMV migration to the US and its impact on our industry, please see:

  1. Gilbarco’s EMV informational web-page
  2. Previous Gilbarco blog posts on EMV:
    1. September 2011 – VISA announces EMV roadmap to the United States
    2. February 2012 – Another “Chip” Falls – MasterCard Follows Visa’s EMV Lead
    3. December 2012 – EMV Migration to the United States – What Convenience Store Retailers Need to Know
    4. March 2014 – Creating an ROI to the EMV Migration
    5. May 2014 – EMV – The Horse is Out of the Barn
    6. August 2014 – Broad Retail Moving to EMV in the U.S.
    7. September 2014 – Recent Data Breaches Highlight the Need for EMV
    8. November 2014 – Fraud at the Pump – How EMV Can Eliminate “Pump and Dump” Schemes
    9. January 2015 – EMV Made Easy – How the Consumer Experience Will Change
    10. March 2015 – Have My Chip – Now Where’s My PIN?
  3. Product Opportunities to create an ROI from the EMV Migration
  4. EMV Migration Forum – Knowledge Center

5 Questions on Dispenser Media with Media Expert Dan Trotzer

1. How important is the dispenser media channel to entertainment partners and advertising partners? In other words, how do entertainment and advertising providers view the fueling consumer?

The dispenser media channel has become an increasingly important component of the media strategy for many of our advertising partners and it continues to grow in importance as networks are quickly expanding. The ability to engage and influence millions of consumers each day on a one-to-one basis with rich video media when they are out of the house and closer to the point of purchase is a unique and valuable opportunity for many brands. Below are some valuable elements of the fueling consumer: Continue reading

Mobile Blinders

Let’s face it.  Smartphones have become a part of our everyday shopping experience.  Apps, mobile couponing, and location-based offers are all examples of how mobile is playing a larger role in the retail environment. While mobile is certainly helping retailers promote their brand and drive traffic, it is also the prime suspect attributing to a drop in impulse purchases at the checkout lanes across the country. Continue reading

Convenience Retail University Recap

I recently attended CSP’s Convenience Retail University from February 2-4 in Dallas, which does a great job of bringing c-store marketing professionals together to discuss trends and strategies in the world of c-store marketing. My goal in attending was to better understand how c-store marketers view their brands and how they market new products that can enhance their brand while growing categories. What I came away with was that successful category marketing is very similar to successful technology and forecourt marketing. Continue reading

Have My Chip – Now Where’s My PIN?

Product Manager, Payment

As EMVTM cards have rolled out in other parts of the world, the majority of them have been issued with an associated PIN (Personal Identification Number) that a consumer must enter to successfully make a transaction.  In some countries use of a PIN is a mandated standard with EMV.  In the UK, it’s not uncommon to hear people informally refer to their EMV cards as “my Chip-and-PIN”.  However, as the U.S. migrates to EMV, we’ve seen most card issuers introduce EMV cards that only require a signature versus a PIN.  I’d like to take a moment to cover some of the reasons for the predominant move to Chip-and-Signature in the U.S. and what it might mean for retail petroleum operators. Continue reading